NIRMA is an insurance pool in the State of Nebraska that provides all lines of insurance coverage to the counties in the State of Nebraska. Our insurance policy was written and designed in a way to meet our members' needs; as such, the language in our policy is not standard ISO language. We have a coverage issue we are trying to resolve and are looking for an opinion about the contamination exclusion we have in our policy.

The claim involves damage to a motor grader which is covered under our property coverage. The motor grader is considered mobile equipment and it is insured under Section B: Property damage 1.B.5.) in the provided policy.

One of our members has a county owned motor grader and fuel tank at an insured employee's residence. The policy territory is extended to cover insured's property located anywhere within the state of Nebraska. The fuel tank has a collection barrel besides the fuel tank to collect the leftover fuel from the hose. Over time, water got into the collection barrel and mixed with the leftover fuel. Insured employee ended up putting the leftover fuel, now mixed with water, back into the fuel tank. The employee then put the fuel into the motor grader, which damaged the fuel system in the motor grader.